Lithoquest Resources Inc (CVE:LDI) (OTCMKTS:CWVWF) (FRA:28U0) has said that due to “strong investor demand” it has increased the size of its previously-announced non-brokered private placement a second time.
The company said it now intends to sell up to 17.5 million company units, at a price of $0.10 per unit, plus up to 5.6 million flow-through shares of the company, at a price of $0.125 per share, for gross proceeds of up to C$2.5 million.
Lithoquest noted that it intends to use the gross proceeds from the offering to advance its gold and base metal properties in northern Ontario and for general working capital purposes.
READ: Lithoquest Resources is branching out beyond diamonds to seek promising gold and base metals deposits
Each unit in the offering will consist of one share and one-half warrant, with each whole warrant entitling the holder to acquire an additional share at an exercise price of $0.15 for a period of 24 months.
The offering is available to accredited investors, family members, close friends and associates of directors and officers, purchasers who have obtained suitability advice from registered investment dealers, and existing shareholders.
The company pointed out that the offering may be closed in one or more tranches as subscriptions are received. The minimum subscription amount is for a combined dollar amount of $2,000
Shareholders of record as of May 28, 2021, are eligible to participate under the Existing Shareholder Exemption scheme. To rely upon exemption, the subscriber must have been a shareholder of the company on the record date and continue to hold shares until the date of closing of the offering; be purchasing the shares as a principal, and either may not subscribe for more than $15,000 of securities from the company in any 12-month period or have received advice from a registered investment dealer regarding the suitability of the investment.
The offering is scheduled to close on or around June 25, 2021.
Lithoquest Resources, formerly Lithoquest Diamonds Inc, changed its name in late 2020 after placing its North Kimberley Diamond Project in Western Australia on care and maintenance in July until financing conditions improve in the diamond industry.
The company recently signed an option agreement to acquire a 100% interest in the Miminiska Gold Project and the Keezhik Gold Project, both of which are located in northwest Ontario.
Contact Sean at sean@proactiveinvestors.com